Vietnamese stocks boosted by bargain hunting
Vietnamese stocks boosted by bargain hunting
Vietnamese stocks advanced on the two local markets on Tuesday as large-cap shares were boosted by investors’ bargain hunting.
The benchmark VN Index on the HCM Stock Exchange added 0.45 per cent to close at 722.11 points. The major stock index had dropped 0.4 per cent in the previous two days.
The smaller HNX Index on the Ha Noi Stock Exchange gained 1.39 per cent to end at 90.37 points, rebounding from a fall of 0.6 per cent on Monday.
Market trading liquidity remained high with more than 283 million shares traded, worth VND5.14 trillion (US$228.6 million).
Large-cap stocks recovered after declining in the previous sessions, with two-thirds of the 30 largest companies by market capitalisation gaining.
Substantial gains were seen by property developers Tan Tao Investment Industry (ITA), Kinh Bac City Development Holding (KBC), Sai Gon Securities (SSI), information technology giant FPT Corp (FPT) and Vietcombank (VCB).
The property firms moved up between 2 per cent and 4.2 per cent.
Among the 30 largest firms, Hoang Anh Gia Lai (HAG) and its subsidiary Hoang Anh Gia Lai Agriculture International (HNG) jumped 4.7 per cent and 5.9 per cent, respectively, after they had fallen 9.8 per cent and 10.9 per cent in the previous two sessions.
The management board of Hoang Anh Gia Lai plans to issue 137.5 million shares to convert VND1.1 trillion worth of convertible bonds at a price of VND8,000 per share in May.
The convertible bonds were issued by Hoang Anh Gia Lai to Northbrooks Investments Pte Ltd, an investment arm of the Singapore-based Temasek Holdings Ltd, in August 2010.
Other large-cap stocks such as Vicostone (VCS), Asia Commercial Bank (ACB) and insurance-finance firm PVI Holdings (PVI) also recovered.
Higher global oil prices on Tuesday also helped local energy stocks increase as the Organisation of Petroleum Exporting Countries and other exporters planned to extend an output cut agreement to the end of 2017.
In the energy sector, PetroVietnam Gas (GAS) rose 1.1 per cent, PetroVietnam Technical Services (PVS) increased by 1.2 per cent and PetroVietnam Mud Drilling (PVC) advanced 2.8 per cent.
Sai Gon-Ha Noi Securities (SHS) said in its report that the growth in the stock market on Tuesday was boosted by investors’ purchases of low-priced shares.
Positive signs were also seen as gaining stocks outnumbered declining ones by 263 to 194, SHS said, adding that in current market conditions, the VN Index could continue rising on Wednesday to approach 723 points.
